Rental Income Tax – Thailand Compared To Continent

Bangladesh 25.00%
Malaysia 22.42%
Georgia 20.00%
Taiwan 20.00%
Indonesia 20.00%
Vietnam 20.00%
Singapore 15.13%
Kazakhstan 15.00%
Azerbaijan 14.00%
Cambodia 14.00%
Hong Kong 12.16%
India 8.11%
Sri Lanka 6.62%
Philippines 5.13%
Pakistan 5.00%
China 5.00%
Thailand 3.80%
South Korea 2.48%
Japan 1.70%

Thailand: Rental income taxes (%).

The tax levied on the average annual income on a rental apartment/property in the country.

Assumptions:

  • Gross rental income is /US$1,500/month
  • The property is personally directly owned jointly by husband and wife
  • Both owners are foreigners and non-residents
  • They have no other local income

In arriving at the pre-tax profit figure, we calculate, and deduct:

  • Depreciation / capital allowances if available. We assume a value for the apartment based on our valuation research, and depreciate on this basis.

We deduct any other costs which a landlord normally pays – management charges, buildings insurance, realtor agency fees, etc. We either choose a standard percentage deduction (if available) or typical actually incurred costs. If real estate tax is normally payable by the landlord, we deduct that.

Source: Global Property Guide Research, Contributing Accounting Firms

Food for thought: Just when many think taxes in Thailand is high, it turned out that it is one of the lowest around the region. This made it so cost effective to invest in Thailand and rental income is pretty attractive and average capital appreciation is already very desirable. One should really consider investing in Thailand, especially in Chiang Mai when it is still not fully developed. Leverage is the key to any first mover advantage. Awesome! :)

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